Vivocom (then known as Instacom) was in the midst of a corporate exercise, and I was intrigued. I conducted due diligence and subsequently, I borrowed some money to invest into the company. Through good timing and luck, the share prices soared and I made profit.
The money I made from Vivocom gave me the financial freedom to discontinue my medical degree to pursue my passion in investing. I followed my heart and have not looked back since.
I continue to track the stock very closely to this very day since 2015. In section 1, we will be illustrating Vivocom’s past two price breakouts and potentially a third.
Figure 2: Chart of Vivocom’s share price from 2011-2020.
Please focus your attention on the 2 periods as marked in the Figure 1:
1. Period A: Aug 2011 — Dec 2013 — First Breakout;
2. Period B: Aug 2015 — May 2016 — Second breakout.
We identified a distinct and potentially repeatable pattern of price breakout in its share performances:
Figure 3: Chart of Vivocom’s share price from Jan 2011 — Dec 2013.
Vivocom acquired the entire stake of Instacom. Its share price doubled within 90 days and closed at RM0.1822 within 224 days on 22 March 2012 (blue line).
A 400% rise in share price within 32 weeks. This was the first breakout. A similar pattern is observed for Vivocom’s share price from 2014-2016.
Figure 4: chart of Vivocom’s share price from Jan 2014 — Dec 2016.
Second Breakout – Within 60 days of the first acquisition, the share price doubled and continued to RM0.2080, whilst within 110 days of the second acquisition, it reached RM0.2304, a 480% breakout in share price from RM0.0480 on 12 May 2016.
Vivocom’s latest proposed acquisition announced on 27 October 2020 could potentially be another multi-bagger returns. It soared to RM0.45 prior to 2nd Nov. Upon consolidation on 2nd November, the price at RM0.50, and surged to a high of RM0.79 before retracing to close at RM0.675.
The share price shot upwards, indicating that the interests among traders is extremely high and they are on the offensive. It closed RM1.39 on 11 Nov 2020.
950 million shares have been traded in the span of 10 days and have changed hands. This is 499% higher than its 3-month average daily traded volume of 15.86 million shares per day.
Vivocom’s value transacted amounted to RM756 million in the past 10 days, averaging RM75.6 million per day. This is 461% higher than its 3-month average daily traded value of RM13.49 million per day.
The exceptional liquidity of Vivocom’s shares, from its high volume, value traded and tight price spread is a rare phenomenon for small-mid cap stocks.
Figure 6: Key Resistance and Support Level for Vivocom
We determined long-term support prices at RM0.20, RM0.50 and RM1.00 as indicated with the orange line. Its key resistance level around RM1.20, RM1.45 and RM1.65 as indicated with the red line.
Vivocom’s share price jumped by 309% from RM0.45 to close RM1.39 on 11 Nov since the acquisition of V -Development. By December 2021, the target price for the stock is RM3.60, RM3.00 and RM2.60 for BSS, MLS and CS respectively. (Figure 7)
Figure 7: Target Price Forecast Based on Money Flow and Elliott Wave Theory.
Based on our EW computations, Vivocom’s strong price uptrend is real and genuine rally as we detect a very clear cut pattern.
Figure 8: Vivocom’s Year-to-date Share Price Jumped 927% from RM0.15 to RM1.39
Vivocom is worth monitoring closely over the next several months based on the followings:-
1) Its price soared by 927% from RM0.15 to RM1.39 (Figure 8), showing tremendous money flow and great follow-through buying at every level, with minimal correction in share price.
2) Based on our Elliot Wave forecasts, the imminent THIRD PRICE BREAKOUTS will peak in the ranges between RM2.60 to RM3.60 by this year’s end(Figure 7).
DISCLAIMER: This report has been prepared by See Jovin. See Jovin does not have any business with the company covered in this research reports but owns the shares of the company. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. See Jovin is not recommending neither a buy nor sell call. This research report is purely prepared for educational purposes only.
Read more: Malaysian Budget 2021 commentary